The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock

The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock
The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock
China economy

China debt: ‘under pressure’ local governments racked up US$2.3 trillion in hidden debt last year

  • China’s local governments had 14.8 trillion yuan (US$2.3 trillion) of hidden debt last year, according to Liu Lei, a senior researcher at the National Institution for Finance and Development
  • Local governments were under pressure to increase infrastructure investments and shore up growth last year through the coronavirus pandemic

Topic |   China economy
The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock

The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock
The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock
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